Partnership Company
Shared Responsibility and Joint Management
A Partnership Company involves two or more partners who share management responsibilities and unlimited liability. This traditional structure is suitable for professional firms and family businesses where trust and collaboration are paramount.
Minimum Capital
No minimum requirement
Ownership Structure
2+ partners with unlimited liability
Liability
Unlimited and joint
Setup Time
1-2 weeks
Advantages
- No minimum capital requirement
- Simple and quick to establish
- Flexible profit-sharing arrangements
- Combined expertise and resources
- Lower setup and compliance costs
- Direct management by partners
Considerations
- Unlimited personal liability
- Partners liable for each other's actions
- Difficult to transfer ownership
- Dissolves upon partner death or withdrawal
- Not suitable for foreign investors
Requirements
- Minimum 2 partners (Saudi nationals)
- Partnership agreement
- Commercial Registration
- Chamber of Commerce membership
- Municipal license
Ideal For
Professional service firms (law, accounting)
Family businesses
Small trading companies
Local consulting firms
Traditional businesses
Setup Process
1
Partnership Agreement
Draft partnership agreement defining roles and profit sharing
2
Name Reservation
Reserve company name
3
Registration
Register with Ministry of Commerce
4
Licensing
Obtain necessary business licenses